Siemens 2012 Annual Report Download - page 153

135 D. Consolidated Financial Statements
239 E. Additional Information
130 C. Siemens AG (Discussion on basis of
German Commercial Code)
134 C. Notes and forward-looking statements
129 C. Compensation Report, Corporate Governance
statement pursuant to Section a of the
German Commercial Code, Takeover-relevant
information and explanatory report

ing investment in large parts of Europe, the change year-over-
year is particularly strong in Brazil, where sharp growth a year
earlier is expected to be followed by a clear decline in invest-
ments. In the wholesale and retail sector, investment growth
is expected to decline to around % year-over-year, down from
around % a year earlier, following the same pattern as invest-
ments in post and logistics.
.. Strategy
...  
Global megatrends are long-term developments that are expect-
ed to have an impact on all humanity. We at Siemens view
demographic change, urbanization, climate change and global-
ization as megatrends that will drive global demand in coming
decades. We have aligned our strategy with these developments
and accordingly have organized our business into four Sectors:
Energy, Healthcare, Industry, and Infrastructure & Cities.
Demographic change includes two major trends: the world’s
population continues to grow rapidly, and it continues to get
older. Together, these two trends will challenge the ability of
future healthcare systems to make affordable healthcare avail-
able to everyone. Urbanization refers to the growing number
of large, densely-populated cities around the world. This trend
intensifies the already strong demand for sustainable and ener-
gy-efficient infrastructures for buildings, transportation sys-
tems, energy and water. Climate change is a fact. The average
global surface temperature increased by .°C between 
and the beginning of the 
st
century. The reduction of green-
house gas emissions is vital to avoiding increasingly drastic
effects on our ecosystem. There is a strong need for innovative
technologies to increase efficiency and reduce the emissions
related to energy generation and consumption. Globalization
refers to the increasing integration of the world’s economies,
politics, culture and other areas of life. Globalization leads to
increased competitive pressure and demand for economical,
timely-to-market, high-quality products and solutions.
...     
Our vision is to be a pioneer in
> energy efficiency,
> industrial productivity,
> affordable and personalized healthcare, and
> intelligent infrastructure solutions.
Our company strategy guides us in turning our vision into real-
ity. We are aiming to be a market and technology leader in our
businesses, based on our values – to be responsible, excel-
lent and innovative. We believe that this will position us to
achieve sustainable, profitable growth and thereby continually
increase our company value. As an integrated technology com-
pany, we intend to profit from the megatrends described
above.
Our strategy comprises what we call our three strategic direc-
tions:
> focusing on innovation-driven growth markets,
> getting closer to our customers, and
> using the power of Siemens.
One Siemens is our framework for sustainable value creation,
with a financial target system for capital-efficient growth and
the goal of continuous improvement relative to the market and
our competitors.
The financial target system of One Siemens defines financial
key performance indicators for revenue growth, for capital ef-
ficiency and profitability, and for the optimization of our capi-
tal structure. In addition, we set hurdle rates that generally
need to be considered before acquisitions are executed. Fur-
ther, we defined an indicator targeted at an attractive dividend
policy. We believe that these indicators will play a key role in
driving the value of our Company. For further information, see
.   .
To achieve our One Siemens goal of sustainably enhancing the
value of Siemens and of exploiting the full potential of our in-
tegrated technology company, we have defined three concrete
focus areas along each of the three strategic directions set
forth above, which we aim to address in the years ahead.
In the strategic direction of focusing on innovation-driven
growth markets, our first focus area is to be a pioneer in tech-
nology-driven markets. Here, we intend to concentrate on mar-
kets that are believed to have future growth potential, for ex-
ample, in vertical IT and software. Our second focus area is to
strengthen our portfolio. We are actively and systematically
managing our portfolio with the principal aim of achieving or
maintaining a No.  or No.  position in our current and future
markets. To provide a leading environmental portfolio is our
third focus area: Our Environmental Portfolio enhances our
Company ’s revenue and makes a significant contribution to cli-
mate protection.
In the second strategic direction of getting closer to our cus-
tomers, one of our focus areas is to grow in emerging markets
while maintaining our position in our established markets. We
plan to offer more products, solutions and services for the rap-
idly growing entry-level segments, which are more price-sen-
sitive and mostly found in emerging markets. A second focus